Transport Corp trims growth guidance for FY24
Vineet Agarwal, the Managing Director of TCI, said the revenues might grow at 8-10% instead of the 10-15% projected earlier. For the first nine months of the year (9MFY24), the revenue grew 5.1% to ₹2,954 crore year-on-year (YoY) from ₹2,803 crore.
Transport Corporation of India (TCI), a logistics and supply chain management company, has revised its revenue and profit growth guidance for the current financial year due to weakness in some of the core sectors.
Vineet Agarwal, the Managing Director of TCI, said the revenues might grow at 8-10% instead of the 10-15% projected earlier. For the first nine months of the year (9MFY24), the revenue grew 5.1% to ₹2,954 crore year-on-year (YoY) from ₹2,803 crore.
The third quarter revenue of the Gurugram-based company grew around 4% YoY to ₹1,002 crore, while its profit declined a little over 7% YoY to ₹80 crore. The earnings before interest, tax, depreciation, and amortisation (EBITDA) margin was contracted to 10% from 12% in the same quarter last year.
While EBITDA margin for 9MFY24 was at 10% versus 11% last year, Agarwal is confident that margins of around 11-12% are sustainable.
Agarwal highlighted the robust performance of the supply chain business, particularly in automotive cargo movement for finished goods and raw materials. In the third quarter, the supply chain business grew the strongest of all segments with an over 16%YoY growth to ₹388 crore. Freight segment were almost flat YoY at ₹485 crore, while seaways (shipping) segment revenue declined over 16% YoY to ₹143 crore.
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The company is eyeing revenue of ₹90 crore in cold chain logistics for FY24. To bolster this initiative, the company has expanded its fleet by adding 75 more trucks, enhancing capacity and efficiency in the critical cold chain segment, Agarwal noted.
TCI's current market capitalisation is ₹7,603.98 crore. The stock has gained 60% over the past year.
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(Edited by : Shweta Mungre)
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